Belgian real estate developer Atenor has announced a capital increase in order to address the difficulties faced by the real estate market, particularly since March 2023.
According to the company, ‘the current evolution of the economic environment, its turbulences and the resulting increase in the cost of financing, require a review the balance between equity and debt.’
The Board of Directors proposed that the fundraising is carried out via a capital increase with legal preferential right for the existing shareholders.
Reference shareholders 3D NV, Luxempart and Stéphan Sonneville have already committed €62 mln, while the company will also seek additional commitments from new stable investors.
The capital increase that will serve three purposes: strengthening the company's balance sheet, enabling the further roll-out of existing real estate projects and enabling Atenor to 'respond to an opportunistic expansion of its international project pipeline'.
Shareholders who do not make use of their preferential subscription rights cannot cash in on their unsold rights that will become null and void and therefore will no longer have any value.
According to the proposal, the new shares that have not been subscribed through the exercise of preferential rights will be offered to the reference shareholders who have already made firm commitments, including 3D which will have priority over other shareholders and to potential new investors who have provided firm commitments.
As part of the transaction, 3D could increase its participation (direct or indirect) above 30% without the obligation to launch a takeover bid.
Atenor will prepare a prospectus for the public offering in Belgium of the new shares and the admission to trading of the new shares and the statutory preferential rights on the regulated market of Euronext Brussels, which must be approved by the Belgian Financial Services and Markets Authority.
The proposal must still be approved by an Extraordinary Shareholders Meeting of Atenor in September.
Atenor develops both residential and office real estate in Belgium and throughout Europe, including France, Portugal, Romania and the Netherlands.
